RI exports to Japan may go up despite slowdown

JAKARTA (JP): The state export promotion agency is confident that Indonesia will be able to boost its exports to Japan by eight percent to about US$8 billion (Rp 69.6 trillion) this year, from $7.4 billion last year, despite the latter's economic downturn.

Gusmardi Bustami, head of the National Agency for Export Development (BPEN), said on Tuesday that his confidence was based on the fact that Indonesia's exports to Japan rose by four percent during the first half of this year as compared with the same period last year.

Indonesia's exports hovered at about $3.6 billion during the January to June period.

"Such an increase indicates that the slowdown hasn't much affected Indonesia's export products, which are mostly basic commodities," Gusmardi told reporters following a joint media conference with Japan's trade promotion agency The Japan External Trade Organization (JETRO).

According to Gusmardi, during the economic slowdown, Japanese people cut their spending on electronics and technology, but not on basic commodities.

Indonesia exports to Japan items such as agricultural products, textiles, plywood, furniture, processed food and beverages, and mining products.

Gusmardi said the demand was expected to be higher during the second half of this year.

"In September and October, Japanese people usually buy products in preparation for next year's sales," he said.

JETRO Jakarta center's president Hirojuki Kato said the Indonesian exporters had to dispatch high-quality products, despite Japan's sagging economy amid an influx of products from China and other countries into Japan.

"They (the exporters) must try to provide better products. Otherwise, their products will fail to compete," Kato said in his speech.

Kato said Japan, through JETRO, would help Indonesian exporters in promoting their products in several fairs and expos in Japan.

"We will provide them (the Indonesian exporters) free venues for business meetings, booths at exhibitions and translators," Kato said.

Commenting on the marked strengthening of the rupiah against the greenback, Gusmardi agreed that such a situation would deal a blow to exporters whose products had a high import content.

"But, the impact will be for a short time. In the course of time, the exporters will soon offset prices in accordance with the real situation in the market, and in turn recover their business," Gusmardi said.

He said the government had forecast the country's exports to reach about $50 billion this year, a marginal increase of three percent from $48 billion last year. (dmr)